I'm not sure what the MOD was expecting. The two bidding groups are probably the only two realistic groupings of the UK shipbuilding industry. I suspect the MOD was hoping that a foreign bidder would emerge with a cut-price design.

To my eyes the latest Type 31e concepts seemed to have crept up in capability from the initial OPV-based concepts that were originally shown. The £250 million price limit was tough anyway, but these latest designs were probably pushing that cost envelope too far unless they were to be commissioned with cut-back armament that may never be fitted. Trying to screw back the profit margins is never going to be popular with business and given the equipment budget overspend they have no guarantee the Type 31 won't ultimately be axed in any future cost-cutting exercise.

The U.K. government shortlisted three groups that include the companies BAE Systems Plc and Babcock International Group Plc to develop designs for its newest warship.

The ultimate contract to build five Type 31e frigates is valued at 1.25 billion pounds ($1.6 billion), with each consortium receiving 5 million pounds to further develop each design, the Ministry of Defense said in a statement. BAE has presented a design with commercial shipbuilder Cammell Laird, while Babcock is bidding in a consortium with France’s Thales SA. The U.K. unit of Germany’s Atlas Elektronik was also selected.

The shortlist is a step forward for the program, initially designed as a cheaper alternative to BAE’s Type 26 complex frigate that can be more readily sold into export markets. The original competition didn’t receive sufficient compliant bids, prompting the government to pause the program and restart the bidding process earlier this year.

A preferred bidder to manufacture the ships will be chosen by the end of next year, with the first delivery scheduled for 2023, according to the ministry.

Does anyone have any idea what the design from Atlas Elektronik looks like?

The U.K. government shortlisted three groups that include the companies BAE Systems Plc and Babcock International Group Plc to develop designs for its newest warship.

The ultimate contract to build five Type 31e frigates is valued at 1.25 billion pounds ($1.6 billion), with each consortium receiving 5 million pounds to further develop each design, the Ministry of Defense said in a statement. BAE has presented a design with commercial shipbuilder Cammell Laird, while Babcock is bidding in a consortium with France’s Thales SA. The U.K. unit of Germany’s Atlas Elektronik was also selected.

The shortlist is a step forward for the program, initially designed as a cheaper alternative to BAE’s Type 26 complex frigate that can be more readily sold into export markets. The original competition didn’t receive sufficient compliant bids, prompting the government to pause the program and restart the bidding process earlier this year.

A preferred bidder to manufacture the ships will be chosen by the end of next year, with the first delivery scheduled for 2023, according to the ministry.

Does anyone have any idea what the design from Atlas Elektronik looks like?

Atlas seems to be more of an underwater system supplier that currently offers 11-18 meter small craft and nothing any bigger. Disused and underutilized shipyards are hardly in short supply in the UK. Appledore just closed last year, for instance. There are plenty of third party designs to be licensed as well. All the same, Thales has always been the RN's preferred underwater system supplier, not Atlas. This is not just an attempt to sell the RN fewer than half a dozen sonar sets, I'd assume.

With the Type 26 having become an apparent export success in Canada and Australia, there isn't an obvious commercial need for 5 oddball hulls. An operational requirement remains but with escalating tension with Russia, it's not hard to imagine additional funding for more Type 26 hulls, decontented or fully equipped.

Dr. Rolf Wirtz, CEO of thyssenkrupp Marine Systems: “We are proud to have reached the decisive design phase for the Type 31e frigates. Based on our proven MEKO A-200 ships, we will offer the Royal Navy a multi-purpose frigate based on our many years of experience in developing high performance, modular naval vessels. The proposed ship design is already in operation with two navies and is unique in its comprehensive modularity and expandability.”

With the support of thyssenkrupp Marine Systems, the ships will be manufactured by Harland & Wolff in Belfast and Ferguson Marine Engineering in Glasgow – the highest added value at the sites mentioned and in the entire local supply industry is guaranteed.

The Type 31e program is considered one of the most important in the Royal Navy’s comprehensive future capabilities program. The MOD want the first ship delivered in 2023.